Institutional investors' interest in cryptocurrencies has decreased by 95%

The analytical company CoinShares has published a report according to which institutional investors invested only $ 433 million in cryptocurrencies in 2022. This was the worst figure since 2018.

The significant drop in investment in 2022 was caused by market volatility, major upheavals in the industry (such as the Terra and FTX crashes), and a noticeable increase in regulatory control. That is why, according to experts, a 95% reduction in crypto investments compared to 2021 is quite expected. In 2021, revenues in the digital asset industry amounted to $ 9.1 billion, in 2020 — $ 6.6 billion.

According to CoinGecko, the total market capitalization of the cryptocurrency market was $ 2.3 trillion at the beginning of 2022 and $ 829 million at the end. This is a loss of approximately 64% of the value of all digital assets.

The fall in the value of cryptocurrencies had a negative impact on miners, who were forced to sell their digital asset mining rigs at the end of 2022. The sale of equipment was caused by the need to pay off loans that did not pay off — during the period of growth in the value of cryptocurrencies, mining companies actively purchased installations and rented premises for them, often on credit.